FIDIC glossary · Disputes
Notice of Dissatisfaction (NOD)
Notice of Dissatisfaction
In short
A formal notice of disagreement with a DAAB decision, opening the way to arbitration. Missing the deadline makes the decision final.
What is a Notice of Dissatisfaction (NOD)?
A Notice of Dissatisfaction (NOD) records disagreement with a DAAB decision. It is the last gate: until a NOD is given, the party retains the right to take the dispute to arbitration; once the deadline passes, the decision becomes final and binding.
The period is 28 days from receipt of the DAAB decision. Missing it is not a procedural slip: the decision acquires a force that cannot be revisited, however wrong it may look.
The point that is constantly confused: giving a NOD **does not suspend compliance**. A DAAB decision is binding with immediate effect whether or not you agree with it. You pay or perform now and argue later. Refusing to comply with a decision that is under a NOD is itself a breach of contract, and can be pursued as one.
After a NOD the parties must attempt an amicable settlement — the 2017 editions allow 28 days for it — and only then does the route to arbitration open.
A NOD is also given against an Engineer's determination where a party disagrees: the period is likewise 28 days, and the consequence of missing it is the same — the determination becomes final.
Where it sits in the contract
Related terms
Need this read against your own contract?
This explains how the mechanism works in the standard form. How it works in your contract, after the Particular Conditions, is a separate question.
Talk to an expert →A reference explanation of the FIDIC standard conditions. Not legal advice, and not a reproduction of the FIDIC books.